Personal Finance. Money. Investing.

World Bank Warns Global Rate Hikes Could Trigger Recession in 2023

The World Bank has warned that the interest rate hikes by central banks across the world could trigger a global recession in 2023.

Posted: 16th September 2022 by
Katina Hristova
Share this article

It's pointed out that the rise in rates has been done by central banks "with a degree of synchronicity not seen over the past five decades" to tackle soaring prices,

This warning comes ahead of monetary policy meetings by the US Federal Reserve and Bank of England next week, which are expected to increase key interest rates.

On Thursday, the World Bank said the economy on a global level was in its steepest slowdown following a post-recession recovery since 1970.

According to a study "the world's three largest economies - the US, China and the euro area - have been slowing sharply," it said.

"Under the circumstances, even a moderate hit to the global economy over the next year could tip it into recession."

The World Bank also urged central banks to coordinate their actions and "communicate policy decisions clearly" to "reduce the degree of tightening needed".

About Finance Monthly

Universal Media logo
Finance Monthly is a comprehensive website tailored for individuals seeking insights into the world of consumer finance and money management. It offers news, commentary, and in-depth analysis on topics crucial to personal financial management and decision-making. Whether you're interested in budgeting, investing, or understanding market trends, Finance Monthly provides valuable information to help you navigate the financial aspects of everyday life.
© 2024 Finance Monthly - All Rights Reserved.
News Illustration

Get our free monthly FM email

Subscribe to Finance Monthly and Get the Latest Finance News, Opinion and Insight Direct to you every month.
chevron-right-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram